A Loan Is to Be Repaid with N Equal Monthly

question 65

Multiple Choice

A loan is to be repaid with n equal monthly payments.If the sum-of-digits method is applied,the sum of the amount of interest paid in the first (I₁) and last month (I_n) is equal to the half of the total amount interest paid.What is the value of n?

• A)4
• B)5
• C)6
• D)Value of n cannot be determined.

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Definitions:

Possessor

A person or entity that has physical control or occupancy of property, but not necessarily legal ownership.

Negligence

A legal concept referring to the failure to exercise a level of care that a reasonably prudent person would in similar circumstances, leading to harm or damage.

Omission

The act of leaving something out or not including something.

Reasonable Person

A hypothetical individual who exercises average care, skill, and judgment in conduct and is often used as a standard for determining negligence.